RadNet, a provider of fixed-site outpatient diagnostic imaging services through a network of 309 owned and/or operated outpatient imaging centers, proposed refinancing its $444.8 million senior secured first lien term loans and $101.25 million senior secured revolving credit facility with a proposed seven-year $485 million senior secured first lien term loan facility and a five-year $100 million senior secured first lien revolving credit facility.
In addition to repaying the existing $444.8 million senior secured first lien term loan, the proceeds are expected to repay any outstanding balance on the existing senior secured revolving credit facility ($16.3 million balance at March 31, 2016) and a portion of the company’s senior secured second lien term loan ($180 million balance at March 31, 2016) and fund fees and expenses associated with the refinancing transaction.
According to a related 8-K filing, Barclays Bank served as administrative agent for a lender group that provided the current financing.
The potential refinancing transaction would be subject to negotiations with lenders and market and other conditions. As such, there can be no assurance that RadNet will complete a refinancing transaction on terms that are favorable to RadNet or its investors. RadNet may engage from time to time in discussions with creditors of RadNet, as well as their respective advisors, as RadNet pursues such potential refinancing transaction.
Mark Stolper, executive vice president and chief financial officer of RadNet, commented, “We have publicly discussed in recent quarters the possibility of extending the maturity of the senior most portion of our debt capital. After having consulted with our investment banking advisors, we expect to launch a refinancing transaction designed to replace our current senior secured first lien term loans and revolving credit facility with similar debt facilities, subject to market and other conditions. Our objective is to eliminate any near-term maturities and provide us with additional operating flexibility with which we can continue to grow our company. If successful, we expect to consummate a transaction in June.”